Weekly Recap: Australian PLV FOB market 10 Jan. Click to read more

Demand

Indian demand for Australian Premium Low-Vol (PLV) coal remains steady, with a total of one Panamax (PMX) shipment recorded. Current buyers include Kalyani, JSL, and Kirloskar, maintaining a consistent purchasing pace.

While demand from other markets is subdued, Indian buyers are emerging as a key source of stability in the market.

Supply

Australian miners have introduced new PLV cargoes, while some end-users are actively reselling, contributing to downfall earlier this week.

After middle of the week, ArcelorMittal has however withheld their PLV offers, and BHP is no longer actively offering in the market. This has limited the availability of high-quality cargoes.

Current position holders include Visa (1 PLV, 1 PMV), IMR (0.5 PMV), and Trafigura (1 Brolga), who are holding firm against downward price pressures.

Prices

FOB prices for Australian PLV coal exhibited a V-shaped trend, dropping near $195/ton from $207/ton as paper market participants liquidated positions under pressure. The market subsequently rebounded to $200/ton.

Position cargo holders are firm in their stance, refusing to offer below $200/ton FOB, reflecting confidence in long-term price stability due to India's coke imports quota.

The divergence between FOB and CFR pricing remains pronounced, driven by differences in regional demand and supply dynamics.